Primary Department: Economic Equity and Opportunity
Primary Department Head/Elected Official: Tiko Reynolds-Hausman, Executive Director
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Secondary Department Head/Elected Official:
Regular or Supplemental RCA: Regular RCA
Type of Request: Policy
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Justification for 0% MWBE Participation Goal: N/A - Goal not applicable to request
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Justification for 0% Grant Indirect Costs Rate (if applicable): N/A - Not a grant item
Request Summary (Agenda Caption):
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Request for approval of the selected Census tracts for nomination as Opportunity Zones 2.0, as the tracts either support dynamic areas of investment or seek to attract investment to economically distressed communities, and authorization to submit the nomination packet to the Texas Governor’s Office of Economic Development & Tourism for potential designation by the U.S. Treasury.
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Background and Discussion:
The federal Opportunity Zones program is currently in a nomination cycle for Census tracts to become designated Opportunity Zones for a period of 10 years, from 2027 to 2037. Taxpayers can invest in Opportunity Zones through Qualified Opportunity Funds and temporarily defer tax on eligible gains. Census tracts are selected through a nomination process by Governors’ Offices and then a designation process by the U.S. Treasury. State governors can nominate up to 25% of eligible census tracts in their state for U.S. Treasury approval. The Texas Governor’s Office is now actively seeking recommendations from economic development organizations and local governments-like Harris County-using the Texas Opportunity Zone 2.0 Nomination Packet, which will guide the state's final submissions to the Treasury. Nomination packets are due by the Texas Governor’s Office by June 26th.
Opportunity Zones were originally created by the Tax Cuts and Jobs Act of 2017. The original program, established in 2017, and referred to as Opportunity Zones 1.0, was essentially a pilot program, and intended to have a term from 2018 to 2028. However, the One Big Beautiful Bill of 2025 made the program permanent. It will sunset the current 1.0 Opportunity Zones earlier than the anticipated 2028, ending the designations December 31, 2026, and designating a new set of 2.0 Opportunity Zones starting January 2027 and ending December 2037. Going forward, the program will solicit a new round of nominations of Census tracts every ten years.
Presently, it is requested and recommended that the Commissioners Court approve the nomination of the attached Census tracts for submission to the Texas Governor’s Office of Economic Development for possible inclusion in the Texas list of Census tracts to the federal government for designation as Opportunity Zones from 2027 to 2037. These Census tracts are eligible for Opportunity Zones 2.0, and either address dynamic growing areas of investment or seek to draw investment into economically distressed areas. Several of the Census tracts were requested by economic development partners for inclusion in the nomination. These partners include the City of Houston, Houston Northwest Chamber, and Partnership Lake Houston.
Following the designation of Opportunity Zones later this year, the DEEO plans to implement a strategy led by a Task Force comprised of County representatives and economic development partners. The Task Force will evaluate potential properties, consider revision of incentive programs, and attract suitable investment opportunities. Potential initiatives include partnering with local anchor institutions to stimulate investment clusters and hosting an Investor Matchmaking Summit to connect developers with funding sources.
Expected Impact:
By approving the nomination of these Census tracts, the Commissioners Court will position Harris County to gain potential incentivized investment in strategic areas of the County for the next decade. If these Census tracts become Opportunity Zones, the County is incentivizing investment in distressed areas with high rates of poverty, homelessness, and deteriorated infrastructure as well as encouraging growth in dynamic sectors that build upon existing investments.
Alternative Options:
The DEEO will adjust the list to remove or add any Census tracts at the Court’s request. Furthermore, nomination does not guarantee that a Census tract will become an Opportunity Zone.
County Strategic Plan Goal: 3. Make our economy more inclusive.
County Strategic Plan Objective: M: Ensure that Harris County remains the best place in the region to start and grow a business, with a focus on equitable economic growth.
Justice/Safety Initiative (Goal 1): N/A
Infrastructure Initiative (Goal 2): N/A
Economy Initiative (Goal 3): M1: Develop a County economic development strategy that advances effective and equitable economic growth.
Health Initiative (Goal 4): N/A
Climate/Resilience Initiative (Goal 5): N/A
Housing Initiative (Goal 6): N/A
Additional notes related to the Strategic Plan:
Prior Court Action (if any):
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06/11/2026 |
140 |
Approved with an amendment: “DIRECT IGA TO WORK WITH DEEO TO ASSURE ALIGNMENT BETWEEN OPPORTUNITIES ZONE 2.0 FOR POTENTIAL SUBMISSIONS OF <https://harriscountytx.new.swagit.com/videos/390829> HARRIS CENSUS TRACK TO BE CONSIDERED. AT THE 6/25 BUSINESS COURT <https://harriscountytx.new.swagit.com/videos/390829>.” |
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Anticipated Court Date: 6/25/2026
Anticipated Implementation Date (if different from Court date): Click or tap to enter a date.
Emergency/Disaster Recovery Note: Not an emergency, disaster, or ARPA related item
Contact(s) name, title, department:
Tiko Reynolds-Hausman, Executive Director, Department of Economic Equity and Opportunity
Elizabeth Balderrama, Interim Director Economic Development, Economic Equity and Opportunity
Attachments (if applicable):
1. Recommendation Notice to Court: Nomination of Census Tracts to Texas Governor’s Office for Opportunity Zones 2.0 Program
2. Maps of Selected Census Tracts Recommended for Opportunity Zones Nomination